She added, "This is a great company," and "it will do well over time." She thinks the $38 IPO price wasn't a mistake because it's not like Facebook, or its bankers were operating in a "black box." They had constant information on demand for the stock and pricing.

Facebook had an opportunity to raise $16 billion in one fell swoop. Its biggest rivals, Google, Microsoft, and Apple, all have piles of cash. If it's going to compete with them, then it needs a healthy war chest too, said Meeker.